Mortgage credit loosened slightly in September, driven by a combination of refinance loans and low down payment loans.
According to September’s Mortgage Credit Availability Index from the Mortgage Bankers Association, which analyzes data from Ellie Mae’s AllRegs Market Clarity business information tool, the index increased 1.4% to 167.0 in September.
To put this information into perspective, a decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The index was benchmarked to 100 in March 2012.
Lynn Fisher, MBA’s vice president of research and economics, explained that the increase in credit availability in September was driven by more investors offering streamlined refinance programs to...